On Wall Street, the Dow Jones industrial average .DJI was off its highs but up 174.74 points, or 1.16 percent, at 15,215.36. The Standard & Poor's 500 Index .SPX was up 15.87 points, or 0.98 percent, at 1,638.43. The Nasdaq Composite Index .IXIC was up 33.03 points, or 0.96 percent, at 3,457.09.

The euro fell to the day's lows against the dollar after the jobs report, touching a session low of $1.3193 and was last at $1.3211, down 0.26 percent.

Against the yen, the dollar gained about 0.46 percent to 97.39.

"This will calm some of the volatility in the markets, as people were very concerned about an aberrational number in particular being too strong and how that would aggressively move the Fed's disposition in terms of tapering," said Rick Rieder, co-head of Americas fixed income at BlackRock in New York.

But volatility is likely to pick up because of news in coming weeks about European growth, U.S. economic data and Japan's direction, he said. The Fed may begin to scale back its asset purchases moderately sometime around September, in line with market expectations, Rieder said.

German Bund futures pared gains and U.S. government debt fell in choppy trade on the view the U.S. payrolls data was not enough to hasten a scaling back in Fed stimulus.

Benchmark 10-year U.S. Treasury notes were down 19/32 in price to yield 2.1449 percent.

Bund futures initially fell as low as 143.25 before recouping those losses. They were last 20 ticks up on the day at 143.65 compared with 143.80 before the data.

Brent futures rose above $104 a barrel, supported by expectations of ongoing U.S. economic stimulus, putting the contract on course for its biggest weekly gain since late April.

Brent crude gained $1.09 to $104.70 a barrel, while U.S. oil rose $1.34 to $96.10 a barrel.